Software and services exports of India are expected to witness a rise of 16-18 percent in the year to March 2012, according to an industry body. The increase is attributed to demand for outsourcing services by Western clients that is expected to remain strong.
Export revenue of $68 billion to $70 billion were forecasted for India’s showpiece outsourcing sector in fiscal 2012 by the National Association of Software & Services Cos (NASSCOM).
India’s IT sector, whose clients include General Electric and Citigroup, would see export revenue rise 18.7 percent to $59 billion in fiscal 2011, NASSCOM said.
It had estimated export revenue of $56-$57 billion last February.
“Pent-up demand for IT-BPO services, return of discretionary spending, new business models that encouraged first time buyers, and re-invented value proposition for existing ones, were the key drivers for the industry performance,” Som Mittal, president of NASSCOM said in a statement.
Last month, India’s top two software services exporters Tata Consultancy Services and Infosys Technologies said business remains good in 2011 but were worried Europe’s debt crisis and rising domestic inflation could weigh on growth.
The share of India in the global outsourcing market rose to 55 percent in 2010 from 51 in 2009 due to growth of demand from the U.S. market and banking and financial services industry, NASSCOM added.
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